To amend the National Flood Insurance Act of 1968 to provide a 50 percent discount in flood insurance rates for the first 5 years that certain low-cost properties are included in flood hazard zones.

January 7, 2003

Mr. GREEN of Texas introduced the following bill; which was referred to the Committee on Financial Services

To amend the National Flood Insurance Act of 1968 to provide a 50 percent discount in flood insurance rates for the first 5 years that certain low-cost properties are included in flood hazard zones.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Low-Income Families Flood Insurance Access Act'.

SEC. 2. DISCOUNTED PREMIUM RATES FOR LOW-COST PROPERTIES NEWLY DETERMINED TO BE IN FLOOD HAZARD AREAS.

(a) IN GENERAL- Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended--

(1) in subsection (c), by striking `limitation under subsection (e)' and inserting `limitations under subsection (e) and (f)'; and

(2) by adding at the end the following new subsection:

`(f) 5-Year Limitation on Premium Rates for Newly Covered Low-Cost Properties-

`(1) IN GENERAL- In the case of any area not previously designated as an area having special flood hazards that becomes designated as such an area, during the period specified in paragraph (2), the chargeable premium rate for flood insurance under this title with respect to any low-cost property that is located within such area shall be the amount equal to 50 percent of the applicable estimated risk premium rate for such area (or subdivision thereof) under section 1307(a)(1).

`(2) PERIOD OF DISCOUNT- The period specified in this paragraph is the period that--

`(A) in the case of a property located within an area that was initially designated as an area having special flood hazards during the 2-year period ending upon the effective date under section 2(b) of the Low-Income Families Flood Insurance Premium Relief Act--

`(i) begins upon such effective date; and

`(ii) ends (I) 5 years later, or (II) upon the occurrence of the first flood event after such effective date that causes any damage to such property, whichever occurs first; and

`(B) in the case of a property located within an area that is initially designated as an area having special flood hazards after the effective date under section 2(b) of such Act--

`(i) begins upon such designation; and

`(ii) ends (I) 5 years later, or (II) upon the occurrence of the first flood event after such effective date that causes any damage to such property, whichever occurs first.

`(3) LOW-COST PROPERTY- For purposes of this subsection, the term `low-cost property' means a single-family dwelling, or a dwelling unit in a residential structure containing more than one dwelling unit, that--

`(A) is the principal residence of the owner or renter occupying the dwelling or unit; and

`(B) has a value, at the time of the initial designation of the area having special flood hazards, that does not exceed $75,000.'.

(b) EFFECTIVE DATE- The amendments under subsection (a) shall be made on, and shall apply beginning upon, the expiration of the 30-day period beginning on the date of the enactment of this Act.

END